ESCO Technologies Second Quarter FY 2025 Earnings Call Bryan Sayler President & CEO Chris Tucker Sr. Vice President & CFO May 7, 2025 1 Forward Looking Statement Statements in this presentation regarding Management's intentions, expectations and guidance for fiscal 2025, including restructuring and cost reduction actions, sales, orders, revenues, margin, earnings, Adjusted EPS, acquisition related amortization, and any other statements which are not strictly historical, are "forward-looking statements" with ...

Financial Performance - Q2 2025 sales increased by 7% to $266 million compared to $249.1 million in Q2 2024[3] - Q2 2025 GAAP EPS rose by 33% to $1.20 per share, up from $0.90 per share in Q2 2024[3] - Q2 2025 adjusted EPS increased by 24% to $1.35 per share, compared to $1.09 per share in Q2 2024[3] - Net sales for the six months ended March 31, 2025, increased to $512,545 thousand from $467,443 thousand, representing an increase of 9% year-over-year[25] - Net earnings for the six months ended March 31, 2025, rose to $54,506 thousand compared to $38,388 thousand for the same period in 2024, reflecting a growth of 42%[25] - Diluted earnings per share (EPS) on a GAAP basis increased to $2.11 for the six months ended March 31, 2025, up from $1.49 in the prior year[25] - Adjusted net earnings for the six months ended March 31, 2025, were $62,727 thousand, excluding $8.2 million of after-tax charges, compared to $47,622 thousand in the prior year[31] Segment Performance - The Aerospace & Defense segment saw sales increase by 8% to $123.4 million, with EBIT rising to $30.3 million[7] - Utility Solutions Group sales increased by 4% to $90.8 million, with EBIT growing to $20.8 million[7] - RF Test & Measurement segment sales rose by 9% to $51.4 million, with entered orders increasing by 75% to $77 million[7] - Aerospace & Defense segment net sales for Q2 2025 were $123,369 thousand, an increase from $114,701 thousand in Q2 2024, representing an 8% growth[27] - The Test segment reported net sales of $51,383 thousand in Q2 2025, up from $47,119 thousand in Q2 2024, reflecting a 5% increase[27] Orders and Backlog - Q2 2025 entered orders were $290.8 million, resulting in a book-to-bill ratio of 1.10x and a record backlog of $932 million[3] - The ending backlog as of March 31, 2025, was $932,269 thousand, up from $878,969 thousand at the beginning of the fiscal year, indicating strong order growth[38] Guidance and Projections - For FY 2025, organic sales are expected to grow by 6% to 8%, with Maritime contributing sales of $90 to $100 million[9] - Adjusted EPS guidance for FY 2025 has been raised to a range of $5.65 to $5.85, reflecting 18% to 23% growth over the prior year[10] - Q3 2025 adjusted EPS guidance without Maritime is projected to be between $1.50 and $1.60, with Maritime expected to add $0.08 to $0.12[12] Cash and Assets - Total current assets decreased slightly to $660,753 thousand as of March 31, 2025, from $668,649 thousand as of September 30, 2024[34] - Cash and cash equivalents at the end of the period were $57,397 thousand, down from $65,963 thousand at the beginning of the period[36] EPS Adjustments - Q2 2024 GAAP EPS is $0.90, with adjustments leading to an adjusted EPS of $1.09, reflecting a $0.19 adjustment primarily due to acquisition-related charges[41] - The $0.19 EPS adjustment includes $6.2 million in pre-tax charges, resulting in a net impact of $4.8 million after tax benefits[42] - YTD Q2 2025 GAAP EPS is $2.11, with adjustments resulting in an adjusted EPS of $2.42, reflecting a $0.31 adjustment mainly from acquisition-related amortization[43] - The $0.31 EPS adjustment consists of $10.7 million in pre-tax charges, leading to a net impact of $8.2 million after tax benefits[44] - YTD Q2 2024 GAAP EPS is $1.49, with adjustments leading to an adjusted EPS of $1.85, reflecting a $0.36 adjustment primarily due to acquisition costs and restructuring charges[45] - The $0.36 EPS adjustment includes $12 million in pre-tax charges, resulting in a net impact of $9.2 million after tax benefits[46]

Core Insights - ESCO Technologies Inc. reported a 7% increase in Q2 sales to $266 million, with GAAP EPS rising 33% to $1.20 and adjusted EPS increasing 24% to $1.35 [1][6][29] - The company experienced a 22% increase in orders, resulting in a book-to-bill ratio of 1.10x and a record backlog of $932 million [1][6][44] - The acquisition of SM&P, now known as ESCO Maritime Solutions, is expected to enhance the company's naval product offerings [4][10] Financial Performance - Q2 2025 sales increased by $16.4 million (7%) compared to Q2 2024, with net earnings rising to $31.0 million from $23.2 million [6][25] - Adjusted EBITDA margin expanded by 250 basis points, reflecting strong revenue growth across all segments [3][6] - Year-to-date net cash provided by operating activities was $58 million, an increase of $39 million compared to the prior year [6] Segment Performance - Aerospace & Defense segment sales increased by $8.7 million (8%) to $123.4 million, driven by Navy and aerospace sales [7][29] - Utility Solutions Group (USG) sales rose by $3.5 million (4%) to $90.8 million, with a strong performance in offline testing products [8][29] - Test segment sales increased by $4.3 million (9%) to $51.4 million, primarily due to higher Test and Measurement orders [15][29] Business Outlook - The company expects organic sales growth of 6% to 8% for FY 2025, with Maritime contributing sales of $90 to $100 million [11][12] - Adjusted EPS guidance for FY 2025 has been raised to a range of $5.65 to $5.85, reflecting continued market strength [12][13] - Q3 2025 adjusted EPS guidance without Maritime is projected to be between $1.50 and $1.60 [14] Dividend Information - The next quarterly cash dividend of $0.08 per share is scheduled for payment on July 17, 2025 [16]

Core Insights - Ascendis Pharma A/S will present new data on its hypoparathyroidism, achondroplasia, and growth hormone deficiency programs at the ESPE & ESE 2025 congress in Copenhagen from May 10-13, 2025 [1][2] Hypoparathyroidism - The company will showcase 4-year efficacy and safety data from the Phase 2 PaTH Forward Trial of TransCon PTH (palopegteriparatide) in adults with chronic hypoparathyroidism [2][4] - Presentations will include a retrospective matched cohort study using real-world data from England to estimate the risk of chronic kidney disease progression in chronic hypoparathyroidism [4][6] Achondroplasia - Ascendis will present Week 52 growth and bone morphometry data from the pivotal ApproaCH Trial of TransCon CNP (navepegritide) in children with achondroplasia [2][4] - The congress will feature discussions on assessing health-related quality of life (HRQoL) in achondroplasia across the life course [4][6] Growth Hormone Deficiency - The company will present results from the Phase 3 foresiGHt Trial supporting the efficacy and safety of once-weekly lonapegsomatropin in adults with growth hormone deficiency [2][6] - The presentations will highlight the importance of growth hormone in maintaining normal body composition and cardiometabolic health throughout adulthood [9] Company Overview - Ascendis Pharma is a global biopharmaceutical company focused on innovative therapies using its TransCon technology platform to address unmet medical needs [10] - The company is headquartered in Copenhagen, Denmark, with additional facilities in Europe and the United States [10]

Group 1 - Ardagh Metal Packaging S.A. (AMBP) has outperformed the Industrial Products sector with a year-to-date return of approximately 25.6%, while the sector has returned an average of -8.9% [4] - The Zacks Rank for AMBP is currently 2 (Buy), indicating a positive earnings outlook with a 1.7% increase in the consensus estimate for full-year earnings over the past quarter [3] - AMBP belongs to the Metal Products - Procurement and Fabrication industry, which is ranked 42 in the Zacks Industry Rank, and has performed better than this group, which has lost about 5.2% year-to-date [6] Group 2 - The Industrial Products group includes 191 companies and is currently ranked 9 in the Zacks Sector Rank, which evaluates the average Zacks Rank of individual stocks within the sector [2] - Another stock in the Industrial Products sector, Esco Technologies (ESE), has a year-to-date return of 18.3% and a Zacks Rank of 1 (Strong Buy), with a consensus EPS estimate increase of 18.8% over the past three months [4][5] - The Manufacturing - Electronics industry, to which Esco Technologies belongs, is ranked 66 and has declined by -14.4% year-to-date [7]

Core Viewpoint - ESCO Technologies Inc. has acquired the Signature Management & Power (SM&P) business from Ultra Maritime for $550 million, enhancing its capabilities in the naval defense market [1][3]. Group 1: Acquisition Details - The acquisition price for SM&P is $550 million in cash [1]. - SM&P specializes in mission-critical signature and power management solutions for the US and UK naval defense markets [1][2]. - The integration of SM&P will significantly scale ESCO's Navy businesses, particularly in US Navy submarine and surface ship programs, and expand into UK and AUKUS navy platforms [1][2]. Group 2: Product Offerings - SM&P's Signature Management solutions provide countermeasures for surface ships and submarines to prevent detection by underwater mines and sensors [2]. - The Power Management product line includes highly-engineered motors designed for critical ship propulsion systems, featuring ultra-quiet designs to enhance stealth capabilities [2]. Group 3: Strategic Implications - This acquisition aligns with ESCO's long-term goal of strengthening its leadership in high-growth end-markets, particularly as global naval defense spending increases [3]. - The impact of the SM&P acquisition will be reflected in ESCO's updated FY 2025 guidance, which will be announced on May 7, 2025 [3]. Group 4: Company Overview - ESCO is a global provider of engineered products and solutions across various end-markets, including aviation, Navy, space, and industrial sectors [4]. - The company is recognized for its RF test and measurement products, diagnostic instruments, and solutions for the electric utility and renewable energy industries [4].

Company Overview - ESCO Technologies Inc. is a global provider of highly engineered products and solutions serving diverse end-markets [3] - The company manufactures filtration and fluid control products for aviation, Navy, space, and process markets worldwide [3] - ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems [3] - The company provides diagnostic instruments, software, and services to industrial power users and the electric utility and renewable energy industries [3] - ESCO is headquartered in St. Louis, Missouri, with offices and manufacturing facilities worldwide [3] Upcoming Financial Event - ESCO will report its second quarter financial results after the market close on Wednesday, May 7, 2025 [1] - A conference call will follow the financial results announcement at 4:00 p.m. Central Time [1] - The conference call webcast and an accompanying slide presentation will be available in the Investor Center of ESCO's website [1][2] - A replay of the webcast will be available for those unable to participate live [2]

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Esco Technologies (ESE) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.Esco Technologies is a member of our Industrial Products group, which includes 200 different companies and currently sits at #10 in the Zacks Sector Rank. ...

Esco Technologies (ESE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The powe ...

St. Louis, March 10, 2025 (GLOBE NEWSWIRE) -- ESCO Technologies Inc. (NYSE: ESE) announced today that Bryan Sayler, President & CEO, will make a Company presentation on Wednesday, March 19, at the Sidoti Small Cap Conference. The presentation webcast will begin at 3:15 Eastern Time and will be available through this registration link. Visuals presented will be available through the webcast link. ESCO is a global provider of highly engineered products and solutions serving diverse end-markets. It manufacture ...